The Seafarer Employment Agreement Under MLC 2006: A Practical Guide for Yacht HR

The seafarer employment agreement, usually shortened to SEA, is the employment contract between a seafarer and the shipowner. On commercially operated yachts it is also a compliance document: flag state and port state inspectors can ask to see it, and missing or incomplete agreements are a common finding.

This guide is for captains, crew managers, HR teams and management companies who prepare SEAs for yacht crew. It explains what the Maritime Labour Convention, 2006 (MLC 2006) requires, how that applies to yachts, and good practice for getting agreements signed and kept. It is general information, not legal advice. Your flag state's rules and national law decide the details, so check them for each vessel.

What MLC 2006 is

MLC 2006 is an International Labour Organization convention, often called the seafarers' bill of rights. It came into force in 2013 and sets minimum standards for seafarers' working and living conditions: employment agreements, wages, hours of work and rest, leave, repatriation, accommodation, food, medical care and complaint procedures, among others.

Each country that ratifies the convention puts it into its own law. That is why the practical requirements for a yacht depend on its flag.

Does MLC apply to yachts?

The convention applies to ships ordinarily engaged in commercial activities. For yachts, the answer therefore depends mainly on how the yacht is used and on its flag state's interpretation:

• Commercially operated yachts, such as charter yachts, are generally within scope.
• Private yachts not engaged in trade are generally outside the convention's scope, although some flags and owners apply MLC standards anyway as good practice, and national employment law may still impose similar obligations.
• Certification: ships of 500 gross tonnage or more on international voyages, within scope, must carry a Maritime Labour Certificate and a Declaration of Maritime Labour Compliance issued under the flag state's rules.

Many management companies use MLC-compliant agreements for all crew, whether a yacht is private or commercial. It avoids two sets of paperwork, makes it easier to switch a yacht to charter, and gives crew clear terms.

Who signs the SEA

Under MLC 2006 the agreement is signed by the seafarer and the shipowner or a representative of the shipowner. In the convention, "shipowner" includes an organisation, such as a manager, that has taken over responsibility for operating the ship from the owner and accepted the shipowner's duties under MLC. On yachts this is often the management company or a crew employment company, depending on how the owner has set things up.

Be clear about which entity is the employer on the agreement. Crew need to know who is legally responsible for their wages, repatriation and other entitlements.

What the agreement must contain

Standard A2.1 of MLC 2006 lists the particulars that every SEA must contain. In summary:

1. The seafarer's full name, date of birth or age, and birthplace
2. The shipowner's name and address
3. The place where and the date when the agreement is entered into
4. The capacity in which the seafarer is to be employed (the position)
5. The amount of the seafarer's wages or, where applicable, the formula used for calculating them
6. The amount of paid annual leave or, where applicable, the formula used for calculating it
7. The termination of the agreement and the conditions for it, including the notice period
8. The health and social security protection benefits to be provided by the shipowner
9. The seafarer's entitlement to repatriation
10. A reference to the collective bargaining agreement, if applicable
11. Any other particulars that national law may require

If the agreement is for a definite period, the expiry date must be stated. If it is for a voyage, the destination port and the time after arrival when the seafarer is discharged must be stated.

Notice periods

MLC requires minimum notice periods for early termination to be set by law or collective agreement, and they must be no shorter than seven days. National law can allow shorter notice for urgent reasons, for example compassionate grounds, without penalty to the seafarer. Many yachts use longer notice periods, such as a month, for permanent crew.

Rights the agreement should be consistent with

An SEA cannot reduce the minimum standards of MLC. When drafting, make sure the agreement and the yacht's practice are consistent with these key points:

• Wages must be paid at intervals no longer than one month, with a monthly statement of payments and deductions.
• Hours of work and rest: either maximum hours of work (no more than 14 hours in any 24-hour period and 72 hours in any seven-day period) or minimum hours of rest (at least 10 hours in any 24-hour period and 77 hours in any seven-day period). Records must be kept. On yachts with busy charter programmes, this needs real planning, not just a clause.
• Annual leave must be at least 2.5 calendar days per month of employment, unless a lawful arrangement provides otherwise. Agreements to give up minimum leave are generally prohibited.
• Repatriation at no cost to the seafarer in the circumstances MLC sets out, including at the end of the agreement and when the seafarer can no longer work due to illness or injury. The maximum period of service on board after which a seafarer is entitled to repatriation must be less than 12 months.
• Financial security for repatriation and abandonment, and for contractual claims for death or long-term disability, must be in place under the 2014 amendments. Flag states require certificates of this cover to be carried on board.
• Recruitment: if you use a crew agency, it must not charge seafarers fees for finding them work, and you should be satisfied it meets the convention's standards.

Signing and record-keeping requirements

MLC sets out practical requirements that are easy to overlook on a busy yacht:

• The seafarer must have an opportunity to examine and seek advice on the agreement before signing it. Sending it in advance, not on the gangway, is good practice.
• Both parties sign, and each keeps a signed original.
• A copy must be available on board so that inspectors can check it, and the seafarer must be able to get clear information about their conditions of employment on board.
• The seafarer must receive a record of their employment on board, such as a discharge book entry or certificate of discharge. This record must not contain any statement about the quality of their work or their wages.
• Where the agreement is in a language other than English, flag requirements may mean an English version or a standard form in English must be available.

Common mistakes on yachts

• Using a generic shore-based contract. It often misses repatriation, financial security and hours of rest.
• Leaving out the formula for wages or leave on rotational contracts. If crew are paid only for time on board, or leave is accrued in a special way, say so clearly.
• Unclear employer. An agreement that names the yacht but not the legal employer creates confusion when there is a dispute.
• Signing on arrival. Crew should see the agreement before they travel, not after they have unpacked.
• Agreements that never get updated. When a crew member is promoted, their salary changes or their rotation changes, update the agreement or add a signed amendment.
• Confidentiality clauses that go too far. A non-disclosure clause should protect the owner's privacy, but should not try to stop crew from using on-board complaint procedures or contacting the flag state or port state authorities. See our guide on yacht crew NDAs.

A practical workflow for HR teams

1. Start from a template that already covers every MLC particular and your flag state's extra requirements.
2. Fill in the yacht and employer details once, so every agreement for that yacht is consistent.
3. Add the position, wages, leave or rotation, start date and notice period for each crew member.
4. Let the crew member fill in their own personal details, such as date and place of birth, so they are correct.
5. Send it in advance, so the crew member can read it and ask questions before signing.
6. Sign electronically where accepted, and give both sides the same final PDF.
7. Keep an organised record: the signed agreement, amendments, and the date of joining and signing off.

How HullpinCrew helps

HullpinCrew includes ready-made templates for seafarer agreements, offer letters, terms of employment and NDAs. You fill in the vessel, position, wages and dates; crew fill in and sign their part on any phone or computer; and both sides receive the same signed PDF, ending with a signature certificate showing who signed and when.

Create an employer account to prepare your next crew agreement online, or read how yacht management companies hire crew to see where the agreement fits in the wider process.

Summary

The SEA is where MLC 2006 becomes practical: it is where wages, leave, notice and repatriation are written down for each crew member. Use a template that covers all required particulars, make sure your practice on board matches what the agreement says, give crew time to read it, and keep signed copies where inspectors can find them. When in doubt about a flag-specific rule, ask the flag state or a maritime lawyer.